Question
The controller of Infinity Stone Corporation has provided you with the following information: Infinity Stone Corporation Comparative Statement of Financial Position As at December 31
The controller of Infinity Stone Corporation has provided you with the following information:
Infinity Stone Corporation Comparative Statement of Financial Position As at December 31 | ||
| 2020 | 2019 |
Cash | $20,500 | $12,500 |
Accounts receivable | 34,000 | 25,500 |
Inventories | 20,000 | 30,000 |
Prepaid insurance | 2,500 | 2,000 |
Equipment | 102,000 | 90,000 |
Accumulated Depreciation: Equipment | (22,500) | (12,500) |
Total assets | $156,500 | $147,500 |
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|
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Accounts payable | $23,000 | $20,000 |
Wages payable | 4,000 | 2,000 |
Interest payable | 2,000 | 3,000 |
Income taxes payable | 4,000 | 5,000 |
Long-term note payable | 30,000 | 34,500 |
Common shares | 65,000 | 65,000 |
Retained earnings | 28,500 | 18,000 |
Total Liabilities and Shareholders Equity | $156,500 | $147,500 |
Additional information:
Net income for the fiscal year was $13,500
Equipment that cost $10,000 and was sold for a gain of $1,000 during 2020. The equipments accumulated depreciation was $7,000.
Required
1. Prepare the operating activities section of a statement of cash flows using the indirect method.
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